Exam 18: Global Opportunities for Small Business

In the past,companies have left the United States to

Match the term with its definition.Some terms may not be used. a.Bill of lading b.Born-global firms c.Counterfeit activity d.Economic risk e.Economies of scale f.Exchange rate g.Letter of credit h.Offshoring i.Political risk j.Royalties -The potential for political forces in a country to negatively affect the performance of businesses operating within its borders

Experience curve efficiencies refers to the savings that arise from repeated production of the same product.

Importing involves

Coca-Cola leased land and built a bottling operation in Turkey This new facility is best described as

Which country would be the least challenging in its ease of doing business according to the World Bank's index?

Once an exporter has shipped a product internationally and the title has been transferred,the exporter receives what is called a

A revocable letter of credit is an agreement to honor a draft or other demand for payment when specified conditions are met and can only be changed by the seller.

Increasingly,small firms find that they must locate their operations abroad if they are to keep their contracts as suppliers to large companies.

A company with the most experienced production employees and the lowest unit costs in its industry indicates that it had benefited from

A company that operates a customer service call center is likely to contract with a company in India to

Match the term with its definition.Some terms may not be used. a.Born-global firms b.Cross-border acquisition c.Exporting d.Globalization e.Greenfield venture f.Importing g.Offshoring h.Trade intermediary i.Trade mission -A trip organized to help small business owners meet withpotential foreigh buyers and establish strategic alliances in an international market

Experience curve efficiencies refers to

John is interested in joining with a large corporation in a cooperative venture to share risks and pool resources for his small auto parts manufacturing business.The strategy option he is exploring could best be described as

If Finagle-A-Bagel contracts with a baker in Hong Kong to manufacture and sell a product in overseas markets,Finagle-A-Bagel would be the

Match the term with its definition.Some terms may not be used. a.Economic risk b.Experience curve efficiencies c.Foreign licensing d.International franchising e.International outsourcing f.International strategic alliance g.Learning effects h.Licensee i.Licensor -Allowing a company in another country to purchase the rights to manufacture and sell a company's products in international markets

Match the term with its definition.Some terms may not be used. a.Economic risk b.Experience curve efficiencies c.Foreign licensing d.International franchising e.International outsourcing f.International strategic alliance g.Learning effects h.Licensee i.Licensor -Insights gained from experience that lead to improved work performance

For some small businesses,a recent trend for going global is to

Match the term with its definition.Some terms may not be used. a.Bill of lading b.Born-global firms c.Counterfeit activity d.Economic risk e.Economies of scale f.Exchange rate g.Letter of credit h.Offshoring i.Political risk j.Royalties -Fees paid by the licensee to the licensor for each unit produced under a licensing contract

While opening an overseas sales office can be effective,small businesses should wait until sales in the local market are great enough to justify the move.